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Wednesday, April 3, 2013
SPX 30-Minute Chart
The 8 MA stabs down through the 34 MA at 11 AM signaling bearish markets ahead. Will the bears finally have a turn to shine, or will the bulls spoil the bear fun like the previous moves? The negative divergence created the top and the spank down. The indicators are agreeable to further weakness. The blue rectangles show the tests of the 200 MA so this moving average carries clout and a test is likely on tap; this price level is 1557-1558. The SPX is currently fighting at the strong 1560 support so this is a bounce or die situation right now. Failure at 1560 should lead directly to the 1557-1558 support test. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
It is a dramatic drop today in gold and such, the miners, however, charts now show the positive divergence highlighted in the charts with the lower low in prices, so this area should produce a base. Nonetheless, they were thrown overboard probably a lot to do with the Credit Suisse downgrade.
Yep, the old saying, 'markets never bottom on a Wednesday', it has worked about 17 out of the last 20 times, to pull numbers out of thin air, but two of those times it did not were over the last year. But in general, today's weakness on a Wednesday should lead to lower lows tomorrow, as long as the weakness remains through the closing bell.
Those of you that I read my post regarding indicator divergences and the light know that I am an engineer and have been warning that technology is week four months. In fact I am on record as stating it is worse than 2008. No one reading this blog should be surprised that the socks is down. This week, another round of layoffs announced in several Fortune 100 companies.
The companies have gotten smart and kept the number of folks involved below the release threshold.
That is good to know Anon and your comment is remembered about companies shuffling folks out the door. Also heard the same scenario from a friend in the medical device industry on Easter, more layoffs coming. Business in general appears slow, those working are busy but there does not appear to be enough work to warrant any new hires. Existing workers are being worked to the bone and have a job unless overall business slows and they will be drop-kicked across the parking lot.
The quick carnage in gold and gold miners is pretty amazing.
ReplyDeleteI got stopped out of NUGT. Looking to re-enter, just not now. Buying instead ERY and SOXS at the moment.
It is a dramatic drop today in gold and such, the miners, however, charts now show the positive divergence highlighted in the charts with the lower low in prices, so this area should produce a base. Nonetheless, they were thrown overboard probably a lot to do with the Credit Suisse downgrade.
DeleteKS, do you still subscribe to the view that a low is usually made on the Thursday - not Wednesday?
ReplyDeleteYep, the old saying, 'markets never bottom on a Wednesday', it has worked about 17 out of the last 20 times, to pull numbers out of thin air, but two of those times it did not were over the last year. But in general, today's weakness on a Wednesday should lead to lower lows tomorrow, as long as the weakness remains through the closing bell.
DeleteThose of you that I read my post regarding indicator divergences and the light know that I am an engineer and have been warning that technology is week four months. In fact I am on record as stating it is worse than 2008. No one reading this blog should be surprised that the socks is down. This week, another round of layoffs announced in several Fortune 100 companies.
ReplyDeleteThe companies have gotten smart and kept the number of folks involved below the release threshold.
This is going to get very ugly.
That is good to know Anon and your comment is remembered about companies shuffling folks out the door. Also heard the same scenario from a friend in the medical device industry on Easter, more layoffs coming. Business in general appears slow, those working are busy but there does not appear to be enough work to warrant any new hires. Existing workers are being worked to the bone and have a job unless overall business slows and they will be drop-kicked across the parking lot.
DeleteI bet you and I are the only two on this blog that you know what dropkicking is.
ReplyDeleteAlthough it is still legal in the NFL, it is very rarely seen.
Thanks for bringing a smile to my face.